BUILD ON AMBITION - DELEVERING ON BELIEF
Overview
A limited liability partnership (LLP) is a body corporate formed and incorporated under the Limited Liability Partnership Act, 2008. It is a legally separated entity from that of its partner.
A LLP is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Since liability of the partners is limited to their agreed contribution in the LLP, it contains elements of both a corporate structure as well as a partnership firm structure.
There is no personal liability of a partner except in the case of a fraud. Moreover, a partner is not responsible or liable for another partner’s misconduct or negligence as there is no joint liability in the case of LLP.
Compliances applicable to the LLP
| Particulars | Details | e-forms | Due Date Form Filling
|
| Statement Of Account & Solvency | A “Statement of Accounts and Solvency” in prescribed form shall be filed by every LLP with the Registrar every year. sub-section (3) of section 34 | LLP-8 | 30th October |
| Annual Return | Every LLP would be required to file annual return in Form 11 with ROC within 60 days of closer of financial year. | LLP-11 | 30th May |
Required Documents
PAN of the designated partners of the LLP.
ID Proof of designated partners of the LLP
LLP agreement
Financial Statements.
Minutes of meetings.
Frequently Asked Question
LLP is required to file LLP Form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually. The ‘Annual Return’ is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates. Every LLP has to maintain uniform financial year ending on 31st March of a year.
Every LLP is required to file ‘Statement of Accounts & Solvency’ in prescribed LLP Form 8 which contains a declaration on the state of solvency of the LLP by the designated partners and also information related to statement of assets and liabilities and statement of income and expenditure of the LLP. This form has to be filed by the LLP on an annual basis.
The documents needed for the annual Compliance are as follows:
- PAN card of the designated partners
- Identity Proof of the designated partners
- LLP agreement
- Required financial statements
- Minutes of Meetings
Audit is mandatory if turnover exceeds 40 Lakhs or the contribution of LLP is 25,00,000.